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(EMAILWIRE.COM, December 17, 2012 ) Encino, CA -- Businesses will have to pay for a service that Google has provided free.
Accounts that include Gmail and cloud applications such as Google Docs will be offered to business as part of a “premium package” for a yearly fee of 33 pounds, according to the search-engine giant. Individual accounts will remain free for the same services.
The announcement came as a surprise to observers, but the search-engine company has been seeking to diversify its revenue, which relies heavily on advertising.
The premium package also includes around-the-clock support and more storage space.
Google Apps have expanded and cannot be supported as a free service for businesses, Google Apps director of product management Clay Bavor wrote in a blog posting.
“Businesses quickly outgrow the basic version and want things like 24/7 customer support and larger inboxes,” according to the statement by Google. “For businesses, instead of two versions, there will be one. Companies of all sizes will sign up for our premium version, Google Apps for Business.”
Small businesses likely will be the most affected, although those that already have signed up for the free Google services will not be charged.
“Please note this change has no impact on our existing customers, including those using the free version,” the company stated.
Google recently has faced criticism for the taxes it pays in the United Kingdom. Last year, the company paid 6 million pounds for 2.6 billion pounds in sales. Members of Parliament have accused Google of avoiding taxes and called it “immoral.”
Google is looking to cultivate other sources of revenue. According to recent financial data, the company is receiving 15% less per-click advertising revenue than in the same quarter a year ago. Google reported a 20% decline in revenue to 1.3 billion pounds for the quarter. Google shares plunged 15 billion on the news.
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Source: EmailWire.com
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